Analysts Warn On Savings Accounts Cuts

Many of us are able to save regularly despite feeling the pinch in the credit crunch. However, it seems we are not always getting the best deal by not shopping around.

Financial analysts have warned that savers should be prepared to regularly review their savings accounts when rates tumble across the board. Some will fall harder than others and there will be some seeking to capitalise on the market however, and savers have been told that they do not need to accept lower rates.

"A small savings cut of, say, 0.05 per cent may go unnoticed by many consumers and will cause minimal customer loss, but can prove a very considerable saving when applied to the collective sum of consumers deposits, potentially a huge pot of money!" said a money expert.

"With over a third of these providers cutting rates across the board, and some imposing rate reductions as large as 0.45 per cent, consumers would have almost certainly noticed a significant change to their interest returns, especially with average instant access rates around two to three per cent."

As with many other aspects of our financial lives checking out the market from time to time is a must and can help save us or earn us extra cash. Interest rates for individual accounts are changing all the time and often financial institutions will compete with each other to get more business.

It can also be helpful to look at other benefits of savings accounts such as when the interest is calculated, some are yearly and some are monthly. Also if there are penalties or notice periods if you want to withdraw money. In addition, the amount you save can make a difference to the benefits of some accounts.

If you would like to know more about savings accounts why not ask AnswerBank Business and Finance.